High-end property market trend to stay firm

High-end property will sustain their current market trend despite concerns of overheating in hot spots such as Penang. according to Raine & Horne senior partner Michael Geh.

He admitted that issues over property bubbles and overheating were valid concerns though the scenario in the state was somewhat different.

“But as long as there are developers red-carpeting speculators, the danger remains,” he said when commenting on skyrocketing property prices that sparked concerns over asset bubble hitting Asian capitals such as Hong Kong, China and Singapore as well as Kuala Lumpur and Penang.

Certain governments have scrambled with tightening measures such as stricter mortgage loan policies and higher deposits on purchasers to cool the market down and prevent a collapse if prices were left unchecked.

Geh’s remarks came on the eve of the three-day Penang International Property (PIP) Summit 2010 which kicks off at the Penang International Sports Arena (PISA) in Relau starting Friday.

Organised by PIP Creation Sdn Bhd with support from Raine & Horne International and Penevents Sdn Bhd, the expo showscases properties from exhibitors such as S.P Setia, Ivory, DNP, Ideal Homes, Seal Incorporated, Plenitude and MTT.

Geh said Penang was experiencing unprecedented seafront developments and reclamation on the northern cape and eastern shore of the island, urban renewal in the city as well as resident development in Balik Pulau.

“There is strong resilience and prices of high-end properties are holding with keen interest from genuine home buyers,

“The bold initiative by the Penang Development Corporation to develop Bayan Mutiara will bolster the sustainability of high-end properties in the state,” said Geh, who is also FIABCI International secretary-general of the National Education Committee.

Among the highlights will be a three-day trade forum aimed at providing critical awareness of both local and regional trends in the property market.

Event director Ong Ban Seang said the forum would be an excellent networking event among exhibitors, industry practitioners, speakers and also the media.

He added that two state executive councillors, Wong Hon Wai and Abdul Malik Kasim, would speak on ‘Creating Affordable Houses in Penang’ and ‘Gearing Penang for Major Tradeshows and Events’ respectively, while Malaysia Property Incorporated chairman Datuk Richard Fong would share his thoughts on ‘Prospects of Foreign Investment in Malaysia’s Property Scene in The New Decade’.

Ivory Properties Group Berhad deputy chairman Datuk Seri Nazir Ariff will also chair a panel discussion on ‘Prospects in Heritage Real Estate in view of Penang’s World Heritage Listing’.

Geh, who is the trade forum’s event director, said the issue of overheating in Penang’s high end residential market would be debate at the forum by Malaysian Institute of Estate Agents.

The Institute of Surveyors Malaysia’s forum will delve into the re-development of stratified property while the Financial Planning Association of Malaysia will discuss about property investment as a retirement plan. - By Fong Kee Soon (The Star)

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